Bankruptcy FAQs and answers too!
What is the difference between Chapter 7 and Chapter 13 bankruptcy?
A Chapter 7 case involves the discharging or elimination of all a debtor’s unsecured debt. Unsecured debt is all debt not associated with any form of collateral. Examples of this kind of debt is credit cards, signature loans, medical debt and any other types of debt where no collateral was attached to the loan.
Stittleburg Law Office no longer handles Chapter 13 cases. A Chapter 13 case is where a debtor has found himself in a situation where he may be behind in his mortgage payments or his car payments and wants a chance to get himself back on track financially. This type of debtor may have lost a job and was out of work for awhile and has just now gotten back to work but needs some time to get his financial house in order. He may have had an illness that kept him away from work longer that he wanted and again needs some time to get back on the right financial track. A Chapter 13 debt consolidation style of bankruptcy is one way to address this type of problem. A plan can be created to pay back the mortgage arrearage and provide for the payment in full of any automobile while at the same time create a way to payback all or a portion of the debtor’s unsecured debt.
The best way to determine which type of bankruptcy may be applicable to the financial situation the debtor finds himself is to call Bernd G. Stittleburg, a bankruptcy attorney in Georgia. Atlanta Bankruptcy Attorney Stittleburg can assess the situation and provide advice as to which type of bankruptcy would be appropriate. Call the Georgia bankruptcy law firm Stittleburg Law Offices, LLC today to schedule your free consultation.
Will I lose everything if I file for bankruptcy protection?
The thought of losing your possessions because you are filing of a bankruptcy case scares many people. Many also have private 401(k) accounts, government retirement accounts and personal private pensions or other investments that they think will get seized and used to pay creditors. The idea that this money may be lost is a real concern of clients. There is good news though, when you file a bankruptcy case, the courts allow you to exempt some of your property such as a portion of your real estate equity, your personal property and your retirement money. Much of this is safe and sheltered from the reach of the Bankruptcy Court by virtue of a Georgia law called the exemption law. The Georgia exemption law sets out specifically what you can protect if you file a bankruptcy.
Read more about exemptions on the GA statutes page.
How does filing for bankruptcy affect my credit?
A bankruptcy filing will reduce your credit score by as much as 200 points when filing for bankruptcy. Whether this is a negative or not will depend on what your score was or is prior to filing a case. If your credit was questionable before filing due to other negative reports on your credit, the filing of the bankruptcy will not affect it all that much anyway. If your credit is low to begin with it will just remain low once you have filed. It will take you some time to recover from that bankruptcy filing and the general time frame for that recovery is about 2 years. This time can be reduced if you retain some of your assets after the bankruptcy such as a car or a house.
How does filing for bankruptcy affect a foreclosure?
The filing of a bankruptcy case will stop all foreclosure actions regardless of whether a Chapter 7 or Chapter 13 is filed. Regarding what happens after the case is filed will depend on what the debtor wants to do with that property. If the debtor’s intent is to surrender and move on, then the mortgage company will request relief from the Bankruptcy Court so that they can once again proceed with foreclosure. If the debtor wants to try to retain the property, an agreement between the debtor and the mortgage company would have to be negotiated.
How much does it cost to file bankruptcy?
The cost to file depends on which type of bankruptcy is filed. A Chapter 7 case will cost $1,500. I do have payment plans available so please contact me regarding payments plans or the cost to file. There is also a court filing fee that must be paid as well. Chapter 7 filing fees are $335.
In order to provide debtors with advice regarding filing for bankruptcy protection under BAPCPA, certain information will be required. Please click here to go to the Bankruptcy Questionnaire page to get started on the process.
Additionally, certain documents will be required in order to review your case, including recent pay stubs and a recent tax return. We can discuss this at your first meeting or phone call.
Why use Stittleburg Law Office?
Pricing is always a concern with clients. Some firms charge more and others less than what Stittleburg charges, so take time to understand what you are paying for. Very simply, when you hire Stittleburg Law Office to file for bankruptcy, you know that Attorney Bernie will work directly with you regarding communications, court appearances, and give legal advice about your situation. No para-legals or secretaries will stand in your way. Attorney Stittleburg goes out of his way to make sure all your questions and concerns are answered.